Wednesday, December 9, 2015

This coursework offers a systemetic technique of decison making. Decison making technique invloves formulation of decison options, states of nature & payoffs. These elements are explained in this work in detail.

Decison making under uncertainty where you have idea of various states of nature & you are not in position to provide probability estimate, this work will tell you about various criterion by which you can make decison.

Decison making under risk where you are you are not only aware about the various states of nature but also you have probability estimates for these states of nature. In this situation the way you can make decison using expected financial value approach.